What Does an Attorney-in-Fact Do in Minnesota?

Being named in someone’s power of attorney means you may handle another person’s money and legal matters. This post explains what an attorney-in-fact may do, when your authority starts and ends, and the duties you owe. You can also download our free guide to keep on hand.

At a glance:

An attorney-in-fact handles financial and legal matters for the person who signed the power of attorney. Your authority comes from the document itself. You must act in that person’s interest and keep complete records.

What Is an Attorney-in-Fact?

An attorney-in-fact handles financial and legal matters for someone else under a power of attorney. The person who signs the power of attorney is called the principal. You don’t need to be a lawyer to serve. Your authority comes from the document, so what you can do depends on the powers it gives you.

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An older woman wearing a maroon top sits at a table, holding a pencil and filling out a form on a clipboard—possibly designating an attorney-in-fact in Minnesota—with a laptop nearby.

Examples of What an Attorney-in-Fact May Do

  • Banking and bills. Deposit income, pay bills and regular expenses, and manage the principal’s bank accounts. Keep the principal’s money separate from your own.
  • Real estate. Handle property matters the document allows, such as paying property taxes and insurance, arranging repairs, or signing papers for a sale.
  • Investments and retirement accounts. Work with financial institutions and advisors on the accounts the power of attorney covers.
  • Benefits and insurance. Deal with Social Security, Medicare, pensions, and insurance companies for the principal when the document authorizes it.
  • Taxes. Gather records and work with an accountant to file the principal’s tax returns and pay taxes owed.
  • Recordkeeping. Keep receipts, statements, and notes for every transaction you make for the principal.
  • Working with others. Coordinate with the principal’s trustee, health care agent, family members, and professional advisors as needed.

When Does Your Authority Start?

Some powers of attorney take effect as soon as they’re signed. Others take effect only if the principal becomes incapacitated. Check the document, and ask the attorney if you aren’t sure.

When Does It End?

Your authority ends when the principal dies. It can end sooner if the principal revokes the power of attorney, if the document sets an end date, or if the principal becomes incapacitated and the document doesn’t say it continues in that case. After death, the estate is handled by the personal representative or the trustee, not the attorney-in-fact.

Your Duties

You must act in the principal’s interest, use the care a careful person would use with someone else’s property, and keep complete records of every transaction you make on their behalf. The principal, and in some cases others such as a guardian or, after death, the personal representative, can ask you to account for how you handled the principal’s money and property.

Remember

  • You’re handling someone else’s money. Don’t mix it with yours or use it for your own benefit unless the document clearly allows it.
  • Gifts, especially gifts to yourself, and changes to beneficiary designations need specific authority in the document, and Minnesota law can limit the size of gifts an attorney-in-fact makes. Ask the attorney before making them.
  • An attorney-in-fact doesn’t make medical decisions. That’s the job of the health care agent named in a health care directive.
  • If you aren’t sure you have authority to take an action, ask the attorney before acting.

Minnesota Law

Minnesota’s power of attorney law is found in Minn. Stat. Chapter 523.

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Why This Role Matters

Mistakes with someone else’s money can hurt the person you’re helping and create problems for you. Knowing your authority and duties up front helps you act with confidence, keep clean records, and avoid steps the document doesn’t allow.

How Everbright Legacy Law Can Help

Everbright Legacy Law is Minnesota’s only law firm integrating licensed social workers with legal services through its Life Care Planning model. Our attorneys prepare powers of attorney as part of estate planning and help agents understand their authority, while our licensed social workers help families find and coordinate care.

If you have questions about serving as an attorney-in-fact, call (952) 925-4147 or email hello@everbrightlegacy.com to schedule a conversation.

This article is for educational purposes only and is not legal advice. Review the power of attorney before taking action, because its terms may change your responsibilities. Consult an attorney about your specific situation.

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